Published on 28 May 2021

Resolution assessments: Amendments to reporting and disclosure dates - PS10/21

Overview

This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 19/20 ‘Resolution assessments: Amendments to reporting and disclosure dates’ (page 2 of 2). It also contains the PRA’s final policy, as follows:

  • amendments to Rules 3.1(1) and 4.1(1) in the Resolution Assessment Part of the PRA Rulebook (Appendix 1); and
  • an updated Supervisory Statement (SS) 4/19 ‘Resolution assessment and public disclosure by firms’ (Appendix 2).

This PS is relevant to UK banks and building societies with £50 billion or more in retail deposits on an individual or consolidated basis, as at the date of their most recent annual accounts (firms).

Firms should also refer to PS9/21 ‘Operational continuity in resolution: Updates to the policy’, and the Bank of England’s (Bank) Statement of Policy (SoP) ‘The Bank of England’s Approach to Assessing Resolvability’ (Bank’s RAF SoP), which have been published at the same time as this PS. 

Summary of responses

The PRA received five responses to the CP. The responses primarily addressed the proposal that firms’ assessments in their first report would also focus on the progress made towards, and outstanding steps needed to implement, the proposals in CP20/20. CP20/20 proposals have now been finalised in PS9/21 (revised OCIR policy). The PRA’s feedback to these responses, and final policy decisions, are set out in Chapter 2.

Implementation

The amendments to Resolution Assessment 3.1(1) and 4.1(1) will be effective from Wednesday 2 June 2021.

The amendments to SS4/19 will take effect upon publication of this PS on Friday 28 May 2021.

Firms must submit their first report by Friday 1 October 2021. Thereafter, firms must submit their report biennially by the first Friday in October of the relevant calendar year.

As part of firm’s preparations for implementing the revised OCIR policy, they should submit to the PRA their plan for implementing the policy by Friday 18 February 2022. Firms are encouraged to submit this plan, alongside other updates they may have to their reports, as they progress their implementation of capabilities ahead of the Bank’s RAF SoP’s compliance deadline of Saturday 1 January 2022.

Firms must publish their first public disclosure by Friday 10 June 2022. Thereafter, firms must publish their public disclosure biennially by the second Friday in June of the relevant calendar year.

The policy set out in this PS has been designed in the context of the UK having left the European Union and the transition period having come to an end. Unless otherwise stated, any references to EU or EU derived legislation refer to the version of that legislation which forms part of retained EU law. The PRA will keep the policy under review to assess whether any changes would be required due to changes in the UK regulatory framework.

Policy Statement 10/21

Appendix


Published on 28 October 2020

Resolution assessments: Amendments to reporting and disclosure dates - CP19/20

Overview

This Consultation Paper (CP) sets out the Prudential Regulation Authority’s (PRA) proposal to extend, by one year, the dates by which firms are first required to submit a report of their assessment of their preparation for resolution, and to first publish a summary of that report under Rule 3.1(1) and Rule 4.1(1) respectively of the Resolution Assessment Part of the PRA Rulebook (Rules). This would amend the dates in the Rules as follows:

  • Resolution Assessment 3.1(1), to reflect that the date by which firms must submit a report of their assessment would change from the first Friday in October 2020, to the first Friday in October 2021; and
  • Resolution Assessment 4.1(1), to reflect that the date by which firms must publish a summary of the most recent report would change from the second Friday in June 2021 to the second Friday in June 2022.

The PRA also proposes consequential amendments to Supervisory Statement (SS) 4/19 ‘Resolution assessment and publication disclosure by firms’.

This CP is relevant to UK banks and building societies with £50 billion or more in retail deposits on an individual or consolidated basis, as at the date of their most recent annual accounts.

Implementation

The CP proposes that the changes resulting from the CP, which will consider responses to any feedback received, would take immediate effect following the publication of the final policy in H1 2021. 

Responses and next steps

This consultation closes on Sunday 31 January 2021. The PRA invites feedback on the proposals set out in this consultation. Responses to this CP, CP20/20 and the Bank’s CP ‘Updates to the Bank of England’s approach to assessing resolvability’ may be included in a single response to RAF_OCIR_consultations_2020@bankofengland.co.uk.

PDFConsultation Paper 19/20

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